Reply to: Setting up a limited company for contract work

[northernladuk]

As you said I think the best way to avoid doing myself over is to get the contract professionally checked and then go on from there I suppose

Make sure you get the full check. Working practices as well as contract. What you do at the client can trump your contract.

[jrshubrook]

Did his lips move when he said it?

As you said I think the best way to avoid doing myself over is to get the contract professionally checked and then go on from there I suppose

[northernladuk]

I will get it checked professionally for the basis of this thread though...


I just checked with the manager at the recruitment consultancy its gone through and he has confirmed its outside IR35.

Did his lips move when he said it?

[stek]

I will get it checked professionally for the basis of this thread though...


I just checked with the manager at the recruitment consultancy its gone through and he has confirmed its outside IR35.

The agent will say anything to get his commission, he won't care less if it is or it isn't or if your get shafted or not.

It's dod eat dog I'm afraid, and as a Ltd it's business, you aren't protected by employment law or rules.....

[Maslins]

I'd agree with most of the other posts on here. Go umbrella.

I appreciate you're keen and have seen there may be modest tax savings to make by using your own Ltd Co...but you're taking on a fairly big responsibility and don't want to use an accountant to assist. It's simply not a good idea IMHO. However, several others have said the same and you've ignored them, so I'm sure you'll ignore me too!

[jrshubrook]

Just because your mates do it doesn't make it right. If they want to take the risk then that's their problem. You are asking us and three of us have said the same. This is not clear cut. There are two many factors pointing to a problem with IR35 and we have no idea what you know about it to be able to take your word that you are outside.

IMO you've two issues here. Your IR35 status is highly questionable. Get a contract check from QDOS for £99 to be sure.
Second is you don't actually know what the figures are. Calculators are highly inaccurate so you need to speak to an actual brolly to find out for sure.

Time to get on with both those tasks.

Thanks for the advice

Will get a professional to have a look and then go from there when I know i'm definitely outside IR35.

hypothetically though if I am outside IR35 then do my calculations work? on the basis there is no other expenses like insurance etc. which will have to be included before going ahead if needed.

[jrshubrook]

Put your figures into this and see what comes up;

https://www.nixonwilliams.com/free-r...pay-calculator

Cheers, tried out the calculator fairly happy with the take home pay on that.

Its about what I calculated give or take.

[jrshubrook]

Use the HMRC tool or get your contract checked by an expert. Then you'll know for certain. And working for £120 a day is not a good place to start but it's up to you to sort out your contracts.

I will get it checked professionally for the basis of this thread though...


I just checked with the manager at the recruitment consultancy its gone through and he has confirmed its outside IR35.

[radish2008]

I've a temporary contract role before in a completely different role for the same rate of £120 a day. I went through an umbrella company then and got back around £1500-£1600 which is like £600 below what i've calculated and about £300 less than a limited company (based on calculator done earlier).

I fully understand basic accounting (I have AAT level 2 under my belt and studying level 3) to do my own accounts and save in the long run especially when i start increasing my rate, so i dont think failure of basic accounting will be a problem, could be wrong though. Im still learning and if im not confident then an umbrella will be the route i take.

To be honest mate i dont know if they have been investigated and come clean.

Use the HMRC tool or get your contract checked by an expert. Then you'll know for certain. And working for £120 a day is not a good place to start but it's up to you to sort out your contracts.

[northernladuk]

I'm outside IR35 it may seem contrary to normal working contractors. A few of MY mates have LTD set up and get more money than when they were set up with umbrella companies.

This thread was mainly to confirm accuracy of the accounts so i could avoid paying accountancy fees and increase money in my pocket which is my best bet at a low rate.

Just because your mates do it doesn't make it right. If they want to take the risk then that's their problem. You are asking us and three of us have said the same. This is not clear cut. There are two many factors pointing to a problem with IR35 and we have no idea what you know about it to be able to take your word that you are outside.

IMO you've two issues here. Your IR35 status is highly questionable. Get a contract check from QDOS for £99 to be sure.
Second is you don't actually know what the figures are. Calculators are highly inaccurate so you need to speak to an actual brolly to find out for sure.

Time to get on with both those tasks.

[jrshubrook]

What makes you think you are?

You haven't even started the role so you clearly don't understand IR35 if you think that you're outside at this stage.
And with such basic knowledge of contracting you want to do your own accountants? HINT: It's a lot more than basic payroll.

Methinks that £120 might be too much with your level of failure to grasp basic concepts.

Have any of your mates been investigated for tax compliance and been found clean?

You can do what you want at the end of the day, it's your livelihood and liberty at risk.

I've a temporary contract role before in a completely different role for the same rate of £120 a day. I went through an umbrella company then and got back around £1500-£1600 which is like £600 below what i've calculated and about £300 less than a limited company (based on calculator done earlier).

I fully understand basic accounting (I have AAT level 2 under my belt and studying level 3) to do my own accounts and save in the long run especially when i start increasing my rate, so i dont think failure of basic accounting will be a problem, could be wrong though. Im still learning and if im not confident then an umbrella will be the route i take.

To be honest mate i dont know if they have been investigated and come clean.

[radish2008]

memory is a fickle and unreliable thing.

I said.....
"For a start you're gonna be inside IR35 as I doubt that for that rate you'd not be under the total direct control of your client (and if you're good enough to not be controlled then you're not very good at negotiating a rate)."

You only needed to highlight this bit.

[Alan @ BroomeAffinity]

Setting up a limited company for contract work

I'm outside IR35.

Who says? And why?

What’s your ROS situation? Have you assessed the D&c or MOO?

I’d take a punt that you can’t send a sub; @£120 pd you’re low enough level that you’ll likely be subject to d&c and your comments already confirm you have MOO issues.

[Lance]

I'm outside IR35 it may seem contrary to normal working forseeable future workers. A few of MY mates have LTD set up and get more money than when they were set up with umbrella companies.

This thread was mainly to confirm accuracy of the accounts so i could avoid paying accountancy fees and increase money in my pocket which is my best bet at a low rate.

What makes you think you are outside?

You haven't even started the role so you clearly don't understand IR35 if you think that you're outside at this stage.
And with such basic knowledge of contracting you want to do your own accountants? HINT: It's a lot more than basic payroll.

Methinks that £120 might be too much with your level of failure to grasp basic concepts.

Have any of your mates been investigated for tax compliance and been found clean?

You can do what you want. At the end of the day, it's your livelihood and liberty at risk.

[stek]

I understand why you think this but I'm fairly sure I am outside the IR35 and is generally how I'm approaching it. A few of my mates are in similar positions with the same recruitment consultancy and have LTD companies set up and having more money at the end of the month...

It's not you who decides though - it's driven by the terms of the contract, the nature of the role and ultimately what HMRC think. All you can do is due dilligence, get the contract IR35 checked and the boxes ticked.

What other people are doing/getting away with is of no consquence, sort yourself out, stay legal and you won't get bum-raped by Hector a few years down the line...